DTC 74: 📦 How Kellogg’s thinks about DTC
May 21, 2023
Content Tag

Wednesday, July 21, 2021

The DTC Team, ready with answers to your most pressing marketing questions:

Did you watch Space Jam 2 this weekend? 🏀 ✨

Outside of the Olympics, Space Jam is likely the marketing event of the summer, sponsored by Nike, Beats, and E3 – with over 200 marketing partners in total. 🤯

If you’re new to DTC, welcome! You’re in good company with fellow newcomers from Haven’s Kitchen, Bev, Banza, Outlaw Soaps, True Religion, Hardpops, Supergoop, and Levi’s.👖

Read this newsletter for:

🥣 A peek behind the curtain at Kellogg’s eRetail playbook.

📺 Why DTC brands are turning to TV marketing.

📨 Loyalty program email inspo from Ugly.

📦 An expert informed guide to Amazon’s Traffic and Conversion Stack.

Read till the end to access exclusive DTC swag. 😎

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This week on the pod, we were lucky to host Joe Harper and Jordan Narducci from the world-famous Kellogg's company.

The Takeaways:

🗣 DTC is an innovation channel

When Kellogg’s develops new products, they can invest millions into the process.

Implementing a test-and-learn strategy of smaller scale batches of experimental products on digital channels makes room for innovation by reducing risk for the company.

They can test the flavors and formats, get the message right, and optimize. By the time they bring it to market, they’ve got a higher chance of success.

Using a $5–10K budget, Kellogg’s will concept test a new product with Facebook Ads.

The ad directs shoppers to their site, asking a series of questions about the upcoming product.

Kellogg's can measure time on site, bounce rate, and create A/B testing opportunities

These data points guide their product development and de-risk their investment.

Through DTC-style testing, they can go to market confident in their innovations – they’ve already consulted the consumer before getting the retailer involved.

🤝 Build a custom B2B channel

Kellogg’s is also using innovation strategies to get its product into retail stores

They’ve seen significant success with a custom B2B eCommerce platform catered to small businesses.  

This strategy focuses on mom-and-pop shops too small to warrant regular attention from a Kellogg’s salesperson.

Through their new Salesforce platform, Kellogg’s can communicate with smaller businesses directly and optimize offerings in a personalized way.

Through the platform, Kellogg’s curates product recommendations for small businesses based on their size and region. The platform also has a tool that helps small businesses optimize their shelves.

This B2B platform has initiated a massive improvement in sales for the small businesses – a win-win for the mom-and-pop shops and Kellogg's.


😖  Frustrated with social CPMs? Big name DTC disruptors are turning to TV.

With issues challenging marketing efficiency and rising costs on platforms like Facebook, marketers are looking for a new channel to scale acquisition and build brand awareness.

Savvy DTC marketers are turning to TV, using new data sources and measurement methods to drive performance against KPIs that used to be exclusive to digital - like CAC, CPV, and ROAS.

Learn how four top DTC brands -- Roman, Made In, Ibotta, and Rothy’s -- are using a modern, data-driven approach to drive performance on TV without breaking the bank.

You’ll learn specific lessons and strategies on how:

  • 🍳  Made In tested premium networks at a fraction of usual price, resulting in such strong performance they doubled spend week over week with the same great results.
  • 🧑‍⚕️  Roman improved efficiency and reached a 66% incremental audience on streaming TV.
  • 🛒   Ibotta used a measurement-first approach to achieve a high rate of acquisition at a reasonable CPI.
  • 🥿  Rothy’s optimized their linear and streaming TV strategy to increase reach beyond their core demographic to capture a high-conversion audience.

👉 Click here to discover tactics that you can apply to your own linear and streaming TV strategy.


🚀 Optimize for eRetailers

Optimizing online shopper journeys is a different ballgame than optimizing in-store.

If you’re a retail first brand dipping your toes into online, consider the following when strategizing for eRetail:

❶ Online shops are often preplanned, so impulse buy opportunities are fewer.

You have to be strategic.

For example, Pringles is an impulse brand that sees great sales in-person, at the check-out on off-shelf displays.

Those display opportunities don’t have an online equivalent, reducing the chance for an impulse buy.

❷ The customer journey is far more complex and customizable on the internet.

A shopper might misspell your brand or search for a specified term like "healthy" cereal or "high fibre" cereal – you need to strategize, so your product doesn’t get missed.

❸ The digital shelf is Kellogg’s main organic priority, making sure that their products appear higher in searches.

It’s essential to be in the top 6-10 search results.

People talk about the idea of the endless shelf online – but that’s not realistic. If you don’t appear in the first few options, you’re not winning.

🚨One size fits all creative and copy won’t work

Kellogg’s is committed to creating platform-specific content that appeals to the particular mindsets of different audiences found in different locations.

You can’t make one ad work across all your channels. 🚨

You need differentiated content and messaging for different platforms.

Shoppers will be in a different mindset depending on the platform and location – create content to meet them where they’re at.

👉 This is a can’t-miss podcast! Listen now. 👈


This 60-second TikTok ad for Casetify (heavy-duty and durable phone cases) by Bryan The Diamond is perfect in every way!

Why it Works:

Bryan The Diamond is known on TikTok for his loud and energetic rants, and he takes them on a whole new level in this Casetify ad.

He starts the ad like he would any other post by addressing his audience directly. "Hey, Besties!" he says, before he gets into what led him to use Casetify.

🚨 Throughout the ad, he uses dramatic push-ins of the camera to emphasize his points. He changes the angles of his shot to stress the features/benefits of the product, making the content feel high energy and dynamic.

He also disrupts the ad by adding another type of content: screen recording.

He wraps it up with a charming CTA by encouraging his audience to use his discount code 15BRYAN when shopping.

This is how you make TikTok "Ads," people!

Check it out!


🚀 Want to dramatically increase organic traffic and conversions like an eCommerce giant?

Ratings and reviews experts Shopper Approved is sharing their inside knowledge of Amazon’s most powerful techniques to increase traffic and conversions in their high-value report.

Download the report to access key discoveries, including:
  • How the Traffic & Conversion Stack dramatically increases traffic and conversions simultaneously.
  • How the Traffic & Conversion Stack pre-converts shoppers to buy before they visit your website – delivering up to a 75% conversion rate.
  • 91% of online shoppers demand these assets on product pages before they will buy, based on a national independent survey.

See first-hand how Amazon is crushing traffic and conversions using this strategy and how your DTC brand can do the same!

👉 Read the full report from Shopper Approved here.


Ugly’s loyalty program encourages subscribers to interact with the brand in multiple ways:
  • Follow on TikTok, IG, Twitter and Facebook.
  • Leave a review.
  • Create an account.
  • Birthday rewards.

It all adds up to more touch points which equals a better chance of converting into a sale.  

Check it out. 👇


Struggling to generate UGC?

Try EGC (employee-generated content).

EGC can get up to eight times more engagement than branded content, PLUS it’s free!

We strongly recommend this, especially for brands just starting out.

Examples of EGC:
  • Video/photos of employees packaging and mailing orders.
  • Employees talking about why they love working for the brand.
  • Tours of the warehouse or office.
  • Video explaining how the product is made.
  • Day in the life of a founder.
  • Short video of the founder explaining why they started the brand.

Check out this example from a small DTC brand called Study Break. The founder is constantly creating new content!


👍 Apparently, only about 25% of Facebook users tapped ‘yes’ in response to the iOS tracking dialogue.

💅 DTC beauty brands are replacing focus groups with private online clubs.

🤯 22 Instagram story hacks that will blow your mind

🤳 TikTok integrates Vimeo's video-creation tools to attract more small business marketers.

📱 Instagram stories drafts are now available to all Users.

💸 Starting in August, ​​US businesses will be able to add Facebook Pay to their websites.

🐦 Twitter has announced that it will shut down Fleets on Aug 3.

👙 Feast your eyes on Panera’s swimwear collection. Yes. Panera’s. Swimwear. Collection.


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🔊 Have you heard our latest podcasts?

🥤 Slashing Facebook ads in half with Olipop’s Steven Vigilante

💇‍♂️ Beardbrand’s Eric Bandholz and the DTC long game.

🌴 Product/market fit with Canopy Humidifiers' Eric Neher and Michael De Santis.

🧻 Battling big TP with Goodwipes CEO Sam Nebel.

💥 Building a bold brand with Ugly's CEO Hugh Thomas.

Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

DTC Newsletter is written by Thomas Schreiber, Eric Dyck, and Sadie Evans.

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